Crypto Coin vs Token (Differences + Examples in Hindi) | Crypto | Asset management

Almost everyone has confused a token with a coin at some point in their cryptocurrency journey.
Simply put, a token represents what you own, while a coin denotes what you’re capable of owning.

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In this video, we are going to cover the following topics-
1. bitcoin
2. ethereum
3. cro coin
4. btc
5. #crypto
6. eth
7. cryptocurrency
8. top altcoins
9. stock market
10. investing
11. blockchain
12. ethereum crypto
13. ethereum explained
14. coin
15. nft
16. nft crypto
17. nfts
18. nft art
19. #what is an nft
20. nft guide
21. nft tips
22. ,nfts explained
23. nft explained
24. token
25. tokens
26. tokens explained
27. what is a token?
28. what are tokens
29. financial education,
30. asset management
31. digital currency
32. coin collecting
33. #difference between coin and token
34. difference between coin and token in cryptocurrency hindi

The fact is that coin and token are very much alike on a fundamental level. They both represent value and can process payments. You can also swap coins for tokens and vice versa.

The main difference between these two comes down to utility. There are things you can do with tokens and not with coins. On the other hand, some marketplaces will accept coins and not tokens.

It’s similar to comparing investors and traders – all traders invest, but not all investors trade. Note that most cryptocurrency users usually own both coins and tokens.

Let’s go over some of the most significant distinctions between tokens and coins, so next time you’re making a reference, you’ll know exactly what you’re saying.

What is a Coin?
When Bitcoin first came out, it set the standard for what it means to be a coin. There are clear-cut qualities that distinguish crypto coins from tokens, which are similar to real-world money.

A coin is defined by the following characteristics:

1. Operates on its blockchain. A blockchain keeps track of all transactions that involve its native crypto coin.

When you pay someone with Ethereum, the receipt goes to the Ethereum blockchain. If the same person pays you back later with Bitcoin, the receipt goes to the Bitcoin blockchain. Each transaction is protected by encryption and is accessible by any member of the network.

2. Acts as money. Bitcoin was created for the sole purpose of replacing traditional money. The paradoxical appeal of transparency and anonymity inspired the creation of other coins, including ETH, NEO, and Litecoin.

You can purchase merchandise and services from many major corporations today, such as Amazon, Microsoft, and Tesla, using crypto coins. Bitcoin has recently become an official currency of El Salvador alongside the US dollar.

3. Can be mined. You can earn crypto coins in two ways. One is through traditional mining on the Proof of Work system. Bitcoin hunters employ this method to boost their earnings. The problem with this is that there aren’t that many Bitcoins left to mine, so the process becomes more arduous every day.

The other method is Proof of Stake, which is a more modern approach to earning coins. It’s lighter on energy consumption and easier to do. Cardano is one of the biggest coins that adopt this system.

What is a Token?
Unlike coins, tokens do not have their blockchain. Instead, they operate on other crypto coins’ blockchains, such as Ethereum. Some of the most commonly seen tokens on Ethereum include BAT, BNT, Tether, and various stablecoins like the USDC.

If crypto coin transactions are handled by blockchain, then tokens rely on smart contracts. They’re an array of codes that facilitate trades or payments between users. Each blockchain uses its smart contract. For example, Ethereum uses ERC-20, and NEO uses Nep-5.

This is different from coins because crypto coins do not move around; only account balances change. When you transfer money from your bank to someone else’s, your money doesn’t go anywhere. The bank changed the balances of both accounts and kept the fees. The same thing happens with blockchain – the balance in your wallet changes, and the transaction notes that.
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